Market is VERY Choppy - I'm trimming back adding to cash, picking up some gold shares....
Economy is getting better, but it seems the bull side is exhausted for right now.
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U.S. Economy: Factory Orders, Home Sales Rose in June (Update1)
July 25 (Bloomberg) -- U.S. factory orders for durable goods last month surged by the most since January, helped by spending on new equipment, suggesting companies are adding spark to an economic recovery that's been carried by consumers.
``The economy is poised to take off,'' said Donald Peterson, chief executive officer of Avaya Inc., the biggest U.S. maker of office-telephone equipment, in a television interview with Bloomberg News. ``The consumer is still strong. We just need corporate America to get more confidence and start to invest.''
Orders for goods made to last at least three years increased 2.1 percent after no change in May, the Commerce Department said in Washington. New home sales in June rose 4.7 percent to a record 1.16 million annual rate, the government reported, spurred by the lowest mortgage rates ever. Existing home sales eased 0.3 percent, according to an industry group.
Federal Reserve Chairman Alan Greenspan has forecast for several months that corporate investment was on the cusp of recovery and will help the economy quicken by boosting production and incomes.
``The news was very good and adds to the belief the economy is on the mend,'' said Joel Naroff, president of Naroff Economic Advisors in Holland, Pennsylvania.
The rise in durables orders was led by demand for automobiles and aircraft. Orders for non-defense capital goods excluding aircraft, a measure of demand for business equipment, rose 0.6 percent in June after a 0.5 percent May increase. A measure of shipments of equipment, which is used for the gross domestic product report, rose 1.3 percent, the third increase in the last four months. |
